set.seed(02119)

y<- round(runif(20, 2, 9), 3)

x1<- round(y*25*(1-runif(20, -0.7, 0.7)), 3)

x2<- c(rep("East", 5), rep("West", 5), rep("North", 5), rep("South", 5))

x3<- round(y*(1-runif(20, -0.5, 0.5)), 3)

For the purpose of the exam, the generated variables represent the following:

y - "selling price of a house in 2021" in 100,000 USD

x1 - "square footage" in sq. m.

x2 - "location within the city - East/West/North/South"

x3 - "selling price of a house in 2020" in 100,000 USD

Run the following code to perform one-way ANOVA analysis to test is there is difference

between the selling price in 2021 across different locations within the city:

summary(aov(y~x2))

Copy the output from R in your report and answer the following questions:

- What are the null and alternative hypotheses behind this analysis of variance? NB:

For the null and alternative hypotheses provide both the formula and explain the

hypotheses in words (using the information of what the variables represent)

- What is the p-value for the ANOVA? Interpret the results in terms of null and

alternative hypotheses